Social distancing has put a lot of people's lives and jobs on pause — but unfortunately, it hasn't stopped scammers. In fact, they're more active than ever.
According to the Canadian Anti-Fraud Centre, phishing scams in particular have surged since the start of the pandemic. Email and text message scams have become especially common, the centre reports Opens in a new window..
Why the rise? In recent years, scammers have benefitted from new technology, which allows them to pull off more sophisticated schemes. Anyone with internet access and a credit card, for example, can design high-quality emails. Some of these do an impressive job of mimicking real emails from a service you subscribe to — or even from your bank. It's also gotten easier for scammers to collect intel by following Canadians' social media feeds and searching for public information.
But there's good news, too: when it comes to preventing fraud, knowledge is power. Here's how to stay one step ahead.
Arm yourself by educating yourself
As scammers' tactics grow more sophisticated, it's more important than ever to refresh your knowledge of some of the most common schemes.
Here are 3 financial scams going around right now.
Spear-phishing
As Canadians move more of their lives online, their email accounts have become attractive targets. One of the most common tactics scammers use nowadays is called spear-phishing. With this scam, a phisher will send an official-looking email that looks similar, sometimes even identical, to the emails you receive from a trusted service provider.
Pretending to be a legitimate company, a fraudster might share a malicious link and ask you to verify an address or "update your payment information" through a linked form. Or, they might give you fake contact information, such as a phone number to lure you into sharing information. Lately, fraudsters have also tried taking advantage of Canadians' health and money concerns with bogus financial offers and products, the Anti-Fraud Centre says Opens in a new window..
How to spot it
Nowadays, most email providers can easily catch spam that contains obvious clues like the famous "Nigerian prince" scheme. The emails you should worry about, however, are well-designed. They may look and sound legit. To spot a more sophisticated phishing scam, look for subtle clues, such as an unusual email address or uncharacteristic request.
For example, if a trusted service provider asks you to call a number right away or share sensitive personal information through a link, consider it suspicious. Even if you think the email might be legitimate, don't click on a provided link or call the sender's number. Instead, visit your service provider's website directly to get their contact details or log into your account.
You may also catch a phishing email by spotting subtle differences in the way an email is designed or the language it uses to address you. For example, if your bank usually uses your first name but suddenly starts addressing you more formally, it may be a sign that something's up.
Smishing
Fraudsters are also targeting people's phones by sending scary-sounding text messages that make it seem like you need to respond right away. You might receive a text saying that your account needs urgent attention or that you're in trouble with the Canadian Revenue Service.
According to the Anti-Fraud Centre, scammers have also started exploiting people's COVID-19 fears by sending bogus texts about vaccines or positive test results. Similarly, some scammers have tried to hawk fake COVID-19 apps and other services, the Anti-Fraud Centre found Opens in a new window..
If you respond to this kind of text, a fraudster will know they have your attention — so don't text back.
How to spot it
Like spear-phishing, the red flags hinting at a smishing scam can be subtle at first. But one big clue to watch for is an urgent message or supposed "emergency" that you need to take care of "right away."
Scammers often use fear to get people to respond. For instance, if a scammer tricks you into thinking your credit card is about to be shut down, you may be more likely to respond impulsively. A message touting an app or product for sale that you can't find via search is also a red flag. So is a message about COVID-19 that's not from your provincial government, your healthcare provider or the Government of Canada. Any official group will let you call them back at a publicly listed number, not demand immediate action.
Phone scams
An older tactic that fraudsters still use is calling people on the phone and pretending to be a service provider or other professional, such as a law enforcement agent or debt collector.
This is an especially dangerous tactic for seniors, who tend to be more vulnerable to fraud, says the Anti-Fraud Centre Opens in a new window.. It's a good idea to talk to the seniors and older adults in your life about these tactics. Make sure they understand what to watch for.
How to spot it
When you receive an out-of-the-blue phone call from a number you don't recognize, you should treat it with a degree of suspicion. The more requests a caller makes, the more suspicious you should be.
A bullying tone is also a sign that something's amiss, particularly if the caller seems to be trying to intimidate or scare you. It can be easy to get caught up in the moment, but try to pause and think about your typical interactions with your institutions: your banking professional or utility provider probably wouldn't use such a harsh approach.
Rather than picking up when you see an unfamiliar number, consider screening the caller and allowing them to leave a voicemail. If you do pick up, tell them you'll call back if they begin asking for specific information like your home address. You can then call a number you've pulled directly from the company's website, so that you know your call is secure.
It's also a good idea to practice good security hygiene — such as using 2-step verification to sign into your accounts, creating unique passwords and changing passwords frequently. This way, your personal information is less likely to get swept up in a data breach.
Finally, make your social media accounts private, and be sure not to share any sensitive information on anything you publish online. Even if you're super excited about that trip to Paris, don't put your open passport on your Instagram story.
Nobody wants to be a victim of financial fraud. Staying aware of scammers' tactics can help you know the red flags to watch for.
